Existing Home Sales Reach Highest Level In 7 YearsThe NAR provided great year-end news as existing home sales in December pushed 2013 sales of existing homes to a 7 year high. December’s reading of 4.86 sales of pre-owned homes came in at 4.87 million on a seasonally adjusted annual basis.

Although projections had been for 4.89 million sales, the December reading topped November’s revised sales of 4.82 million pre-owned homes.

December’s reading showed the first gain in existing home sales in three months. NAR reported that existing home sales for 2013 reached 5.09 million, which represented a 9.10 percent increase over 2012.

More Good News: Median Price Of Existing Homes Rises

NAR reported that the national median price for pre-owned homes increased to $198,000, a year-over-year increase of 9.90 percent. The average price of an existing home for all of 2013 was $197,100. This was the strongest growth in existing home prices since 2005 and represented an increase of 11.50 percent.

There were 1.86 million pre-owned homes for sale in December. At current sales rates, this represents a 4.60 month inventory. Real estate pros like to see a minimum of a six-month supply of available homes, so existing homes remain in short supply.

Analysts attributed rising home prices to improving economic conditions and a persistent shortage of homes for sale.

FHFA: Slower Gain for Home Prices In November

FHFA, the agency that oversees Fannie Mae and Freddie Mac, reported that November prices of homes financed with mortgages owned or guaranteed by the two agencies rose by a seasonally adjusted 0.10 percent as compared to October’s increase of 0.50 percent and an expected growth rate of 0.40 percent.

November’s reading brought year-over-year home sales to an increase of 7.60 percent, but is still 8.90 percent below their April 2007 peak.

Analysts noted that recent reports of increasing new home construction and rising new home sales as reasons why prices of existing homes are seeing slower growth.

What’s Ahead For Mortgage Rates This Week – January 27, 2014Last week was an action-packed week for economic news, and all of it was packed into Thursday:

Weekly Jobless claims came in at 326,000 which was lower than the expected 330,000 new claims. This week’s claims were higher than the prior week’s 325,000 new jobless claims filed.

The NAR released its Existing Home Sales Report for December; sales of existing homes sold at a seasonally adjusted annual rate of 4.86 million.

December’s reading fell shy of estimates of 490 million existing home sales, but the estimate was based on November sales that were later adjusted downward to 4.82 million sales of existing homes. Existing home sales for 2013 came in at 5.09 million sales, a 9.10 percent increase over 2012 sales.

The median price of a pre-existing home reached $198,000 in December, with the median price for all of 2013 at $197,100, which was an increase of 11.50 percent over the average price for an existing home in 2012.

Pent-up demand and a lingering shortage of available homes likely contributed to last year’s rapid rise in home prices.

Mortgage Rates Mixed, FHFA Reports Slower Gain For Home Prices

Freddie Mac reported mixed results for average mortgage rates in its weekly PMMS report. The rate for a 30-year fixed rate mortgage fell from last week’s 4.41 to 4.39 percent.

The average rate for a 15-year mortgage dipped by one basis point to 3.44 percent; discount points for both 30 and 15-year mortgages were unchanged at 0.70 percent.

The average rate for a 5/1 adjustable rate mortgage rose from 3.10 to 3.15 percent with discount points unchanged at 0.50 percent.

FHFA, the agency that oversees Fannie Mae and Freddie Mac, released its Home Price report for November 2012. This report is based on information gathered about homes with mortgages owned or backed by the two firms. According to FHFA, home prices increased by 7.60 percent year-over-year.

Home prices moved up by 0.10 percent in November as compared to a rate of 0.50 percent in October.

Leading Economic Indicators Suggest Economy Strengthening

The Leading Economic Indicators report for December moved up by 0.10 percent, which pushed the index to a reading of 99.4. December’s reading represented the sixth consecutive month that the index gained ground.

Economists associated with the LEI report note that while steady growth is expected during the spring, the economy will likely encounter a few obstacles including rising interest rates and possible political gridlock over raising the national debt ceiling.

This Week

This week’s economic news is set to include New Home Sales, the Consumer Confidence Index, and Weekly Jobless Claims. Freddie Mac’s PMMS mortgage rates and reports on consumer spending and consumer sentiment round out the week’s news.

The FOMC statement expected after the committee concludes its meeting on Wednesday is expected to provide news of the Fed’s plan for further tapering of its quantitative easing program.

Inspect And Maintain Your GarageIn most parts of the country, garages are especially appreciated at this time of year. Even if you don’t live in a colder climate, it’s important to do an annual inspection and routine maintenance to keep everything in working order.

Make sure yours is doing its job well by following the care tips below.

Check The Tracks

You’ll want to make sure the garage door can go up and down smoothly. Get your leaf blower and blow any cobwebs, bugs or leaves from the track.

With older doors, you’ll also need to oil the metal rollers, hinges and tracks in order to keep everything moving easily.

Inspect For Pests

This time of year, pests are searching for a warm place to take shelter and find food. Look along the walls where they meet the foundation and double-check any spots where you’ve had moisture problems.

If you see chewed wood or trails of sawdust, call an exterminator because they could be signs of termites or carpenter ants.

Insulate Your Garage

If you have a workshop or gym located out in the garage, then insulating this space is a must for colder climates. Not only will it make your home warmer, but also it will reduce your electricity bills. You can buy DIY kits for under $100.

However, be careful if your door is over nine feet wide, because the extra weight can be too much for some opening mechanisms.

Spend Time On The Floor

Don’t actually get down on the floor, but definitely give it some care. Move everything out and hose down the entire surface. Patch any gaps to prevent tripping. Then give the foundation a good inspection.

If you notice mold or major cracks, call a contractor to come take a look and see if you have settling or water drainage issues.

Consider Replacing The Doors

You’ll know it’s time to replace your door when the panels are rusted and scratched or there are wooden ones that are warped. There are many decent replacement options, including wood, steel or aluminum.

The prices can range from high to reasonable depending on the quality of the material. If you decide to do a replacement, talk to an expert and take your climate into account.